Google today announced Checkout, a much anticipated online commerce feature. Previously reported to be called GBuy, Google's Checkout enables customers to use their Google login to make purchases securely and quickly. Major online etailers are set to sign on with Checkout and Google says it expects many people to be Checkout-enabled in the short term. According to Google, Checkout will offer customers a higher level of security by masking credit card information from the store, and in fact be able to offer customers reimbursements for purchases that were not authorized. The press release indicated:

If shoppers want to use Google Checkout, they can create a Google Checkout login right from the merchant's site with a single username and password by entering basic information, such as their contact details, payment preferences, and shipping information, once. Then, when checking out at any store that offers Google Checkout, they can simply select Google Checkout, quickly complete their transaction with their login information, and avoid the hassle of filling out multiple forms. In addition, shoppers can keep track of their purchase history, including orders and shipping details, in one place.

During a recent press conference, Google CEO Eric Schmidt indicated to reporters that the new service would not be a competitor to eBay and said that it would be "different" from PayPal. Checkout will be compatible with all major credit cards and Google is currently holding a special promotion with Citi. The company also indicated that Checkout will tie in with other programs like AdWords and AdSense -- an ideal tracking and marketing combination for merchants it said.

To acquire new customers and participants, Google is currently offering a payment processing service through Checkout for merchants where for every $1 they spend on AdWords, they can get $10 worth of sales processing through Checkout for free. Google says the program offers a big incentive for merchants, who routinely pay higher processing fees while having to pay for separate advertising.

Am I the only one that's actually had good luck using them? I got screwed once on a $90 item, and was refunded my money through paypal with little effort at all. In fact it was so easy that I felt like defrauding them would be extremely simple. All I did was fill out a form on their website and next thing you know, $90 in my account.

No, you're not, I had no issues with them at all. It's just some people being a little bit greedy, plus PayPal imposes those hucking personal account limits, god I hate it! Other than that they are ok guys to me.

Ah, they also could cancel 3% fee if the transaction was funded NOT with CC, but with debit - this is why we need competition from Google! If Google does the same with no stupid account limits and more user friendly fee policy (no CC == no 3% fee) I'll switch in a sec, even if I lose my eBay rating - I'll just build it again from scratch, in 3 years I'll be 102/100% positive again :-)